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ACCT 2102 UGA, Amanda Farmer, Exam 1 Questions With Revised Answers

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ACCT 2102 UGA, Amanda Farmer, Exam 1 Questions With Revised Answers Financial and Managerial Accounting differ in - answerRules, Time Focus, Users, Output, and Preparers Managerial Accounting has no guiding set of rules - answerTrue Financial Accounting is focused on ___________, while Manager...

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ACCT 2102 UGA, Amanda Farmer, Exam 1
Questions With Revised Answers

Financial and Managerial Accounting differ in - answer✔✔Rules, Time Focus, Users, Output,
and Preparers

Managerial Accounting has no guiding set of rules - answer✔✔True
Financial Accounting is focused on ___________, while Managerial Accounting is focused on
____________ - answer✔✔The Past

The Future
Financial Accountants prepare journals for ______________, while Managerial Accountants
prepare journals for ______________ - answer✔✔External Users

Internal Users
Financial Accountants prepare journals for _______________, while Managerial Accountants
prepare journals for ________________ - answer✔✔Financial Statements

Whatever the Business Needs

Profit - answer✔✔Revenue - Expenses

Costs are Incurred Along - answer✔✔The Value Chain

Value Chain - answer✔✔Research and Development, Design, Production/Purchase, Marketing,
Distribution, and Customer Service

Differentiating Link - answer✔✔Production/Purchase

Expense - answer✔✔The incurring of a cost

How do Costs Impact Revenue? - answer✔✔A company must gauge how much something costs
to make the price, as well as look at competitors' prices

, ©THEBRIGHTSTARS 2024

Costs Determine Price, Price Determines Revenue

Costs Should Only Be Incurred If They - answer✔✔Add Value

Service - answer✔✔-Provides a service, nothing tangible

-No production/purchase

Merchandiser - answer✔✔-Sells merchandise, tangible products

-Purchasing link

Manufacturer - answer✔✔-Makes and sells a tangible product

-Production link

Cost Object - answer✔✔The thing we want to know the cost of

Period Costs - answer✔✔Impact profit in the period where they're incurred and go straight to the
income statement

R&D, Design, Marketing, Distribution, and Customer Support

Product Cost - answer✔✔Any cost incurred as a merchandiser to get the product ready for sale

Production and Purchase
Cost (Merchandiser Example):

1. Shipping product from supplier to retail location
2. Phone expenses related to securing new suppliers
3. Dollar amount of inventory purchases from supplies
4. Import duties/taxes on purchases

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